Saudi Arabia’s Public Investment Fund (PIF) and Saudi Aramco are planning to set up a “super contractor” in partnership with local and international contractors.
MEED reported on Saturday that Aramco, PIF, a local contractor and an international contractor, will each own a 25 percent stake in the new entity.
Among the companies interested in this partnerships are: Al-Muhadib Contracting, El-Seif Engineering Co., Al-Rashid Trading & Contracting Co., and Nesma & Partners Contracting Co.
According to MEED, the new entity will replace distressed contractors, particularly Saudi Binladin Group and Saudi Oger, which have suffered financial difficulties in recent years and have been forced to scale back their operations.
The new entity is expected to take over major projects announced by the Public Investment Fund such as the Red Sea Project and Jeddah Downtown.
The new company will be responsible for the construction projects, which were assigned to Aramco. The construction sector will be separated from the mother company, and it is expected to recruit about 15,000 employees and employees.
Aramco plans to sell about 5 percent of the giant oil company, the cornerstone of Saudi Vision 2030, as a major reform plan led by Crown Prince Mohammad bin Salman, aimed at diversifying the Saudi economy away from oil.
Aramco has signed five memorandums of cooperation with Russian hydrocarbon giants during the Russian-Saudi Investment Forum. The agreements include: a trilateral MoU with the Saudi Public Investment Fund and Russian Investment Fund, for direct investments in the energy and industry sectors.
A MoU with the Russian Energy Giant Gazprom (cooperation in the field of Gas), and another memorandum with LITASCO (cooperation in trade); a MoU with Gazprom (for cooperation in the field of technology, research, and development); and finally, an agreement with Sibur and the Russian Direct Investment Fund (RDIF) (for strategic marketing of petrochemicals). These MoUs will allow all parties to jointly assess the potential for joint investments and marketing in petrochemical projects in both countries.
Sibur, biggest petrochemicals company in Russia, and the RDIF, inked on Thursday a memorandum of understanding with Aramco on the possible cooperation opportunities in Russia and Saudi Arabia.
In a statement, Sibur said both companies are planning to assess perspectives of the Russian and Saudi petrochemical markets, and to likely expand the cooperation in this sector.
Dmitry Konov, chairman-Mgmt Board at Sibur Holding said: “This partnership with one of the biggest Saudi petrochemicals companies will allow Sibur to develop its expertise and sales, along with studying the Middle Eastern market.”
Russian Energy Minister Alexander Novak said on Wednesday that Sibur would sign a $ 1.1 billion deal to build a plant to produce gas chemicals in Saudi Arabia.